HOW TO SAVE THOUSANDS ON FUEL WHAT YOU CAN DO TO KEEP YOUR TANK AND YOUR WALLET FULL

Transcription

1 1 HOW TO SAVE THOUSANDS ON FUEL WHAT YOU CAN DO TO KEEP YOUR TANK AND YOUR WALLET FULL

2 2 FUEL CAN ACCOUNT FOR UP TO 40% OF A TRUCKING COMPANY S BUSINESS EXPENSES. So it s no secret that saving money on fuel is a priority for most carriers. Because fuel is one of the largest variable costs in trucking, it can be tough to manage. While you can t control the price of fuel, you can use technologies, equipment and techniques to help you increase fuel efficiency.

3 3 FUEL COSTS AND THE TRUCKING INDUSTRY The cost of fuel impacts the entire trucking industry. According to The Truckers Report, it takes over 37 billion gallons of diesel fuel to move 9.2 billion tons of freight annually. That s nearly 3 million heavy-duty Class 8 vehicles and over 3 million truck drivers that rely on fuel to keep their trucks rolling! In 2014, trucks consumed 38.4 billion gallons of diesel fuel for a total cost of billion*, 2015 Trucking Trend report! On average, it costs about 180,000 per year to operate a commercial truck. Each truck uses around 15,000 gallons of fuel annually, which equals approximately 42,000 in diesel fuel costs*. When nearly 40% of your total expenses are fuel, discounts at the pump can add up to big savings! * Cost calculations were based on average diesel prices when the white paper was written in June The cost of fuel impacts the entire trucking industry. IT TAKES OVER 38.4 BILLION GALLONS OF DIESEL FUEL TO MOVE TONS 9.2 BILLION TONS OF FREIGHT ANNUALLY That s nearly 3 million heavy-duty class 8 vehicles and 3 million truck drivers that rely on fuel to keep their trucks rolling!

4 4 FUEL COSTS AND DISCOUNTS It s important to know the difference between the types of diesel fuel prices and discounts. Credit Price 3.76 Retail 3.70 TYPICALLY RETAIL PLUS 6 RETAIL PRICE IS DETERMINED BY COMPETITIVE PRESSURE Retail Minus 3.65 RETAIL PRICE, MINUS AN AMOUNT Example shows retail minus 5 cents. FUEL DISCOUNT PROGRAM Cost Plus 3.55 COST PRICE, PLUS AN AMOUNT Example shows cost plus 5 cents. Cost 3.50 RACK PRICE, PLUS TAXES & FREIGHT; DELIVERED PRICE Cost Minus 3.45 COST PRICE, MINUS AN AMOUNT Example shows cost minus 5 cents. To learn more about fuel prices and the types of fuel discounts, check out our blog post: How Are Fuel Discounts Determined? So how much will you pay when you fill up? Your fuel costs will depend on how many trucks you have and how big your trucks fuel tanks are. Filling a truck that has a 120 gallon tank will generally run 336 or more depending upon the truck stop s pricing, the state s fuel taxes, any environmental taxes and any discounts. * Cost calculations were based on average diesel prices when the white paper was written in June 2015.

5 5 FUEL SAVING RESOURCES Fuel Calculators Fuel calculators can help you save big on fuel. In order to get an accurate calculation you must first know your Freight Rate or how much it costs to move your truck. You can use OOIDA s Fuel Surcharge Calculator to learn your freight rate. OOIDA also has an app you can download and use on your smart phone. To use the calculator to get the per mile surcharge, enter your fuel cost, average mpg, and the average diesel fuel price. Another helpful calculator is the Apex Fuel Savings Calculator, which shows the amount you could save on fuel with the Apex Fuel Discount Program, based on your truck specifications and how many miles you drive. You first select the miles per week you run, then add the mpg of your rig. Select the closest diesel price and finally, select a discount to see your savings. This tool can show you how fuel cards can be a great way to save on one of your biggest trucking expenses. Fuel Cards Speaking of fuel cards. While you can t control the price of fuel, you can still save at the pump by using a fuel card. You can get signed up through your favorite truck stop or join one through a third party, like the Apex Fuel Discount Program Fuel Cards. Fuel card programs help you get deep discounts off fuel at the truck stops you visit most and offer you special deals and incentives just for being on the fuel card. For example, the Apex Fuel Discount Program offers one of the largest fuel discount networks in the industry and has saved clients over 65 million since the program began. Apex passes 100% of the discounts back to our clients, resulting in huge savings for the trucking companies we work with. The Apex Fuel Cards are universally accepted at more than 6,000 truck stops in the U.S. and Canada with discounts offered at more than 1,300 locations including TA and Petro, Ambest, Sapp Bros, Speedway, and more. Most Apex clients fill up at major and second tier truck stops to save an average of 0.15 per gallon. That s about 18 per 120 gallon fill up!* When regularly used with the Apex Fuel Finder, savings increase to around 0.30 per gallon. An average truck drives about 100,000 miles per year, according to the Federal Highway Administration. Current trucks average about 6.5 mpg and use about 15,385 gallons of diesel fuel a year. With the Apex Fuel Discounts you could save 2,307* a year, per truck!

6 6 FUEL SAVING TECHNOLOGIES Apex Fuel Finder Technologies like the Apex Fuel Finder help Apex fuel card users find the best fuel prices at truck stops along their routes. By using the Apex Mobile Factoring app, available for your Android or ios, you can see the best discounts available. By taking advantage of the best discounts, you can save up to 0.30 off the price at the pump, which can add up to thousands in savings! EACH YEAR A TRUCK USES APPROXIMATELY 15,385 GALLONS OF FUEL THAT COSTS ABOUT 42,000 If you could save 15 per gallon you would save 2,307 per year. THAT EQUALS: Bread = 1,580 loaves Bacon = 467 lbs Cheddar = 434 lbs Lettuce = 2,197 lbs Add the Apex Fuel Finder and get 20 off each gallon. That s a savings of 3,077 per year! ENOUGH TO BUY: Bread = 2,107 loaves Bacon = 623 lbs Cheddar = 579 lbs Lettuce = 2,930 lbs That s a lot of sandwiches! Fuel Software Another way to save on fuel costs is to decrease the amount of fuel your trucks are using. Fuel optimization software can help you manage your fleet s fuel consumption. One option is GreenRoad, a driver performance firm that implements a feed-back system for its clients that cuts fuel and maintenance costs by about 10%. Software like ProMiles monitors the fuel pump prices along your truck s route, its current fuel level, tank capacity and fuel economy, as well as factors in fuel taxes and volume discounts. If you have multiple trucks in your fleet, outfitting your trucks with fuel optimization software could make a big difference in your bottom line. If you re confused about which technologies to choose, there are conferences dedicated to help you find the right fuel-saving technology, such as the Southeast Regional Fleet Workshop hosted by Calstart. These conferences are educational sessions held across the country that can help you learn about the newest fuelefficient technologies so you can find the ones that fit your business to help you improve your fuel economy and save you money.

7 7 FUEL SAVING EQUIPMENT WHEN TRUCKS REACH SPEEDS OF 50 MILES PER HOUR, AERODYNAMICS IS THE MOST IMPORTANT FACTOR IN FUEL ECONOMY. For long-haul truckers, who spend most of their time at those speeds, there is a huge opportunity for fuel savings. For every 2% reduction in aerodynamic drag, you can get a 1% improvement in fuel economy. Trailer Skirt A trailer skirt is an easy way to make a big difference in fuel economy. It attaches to the underside of a truck s trailer and reduces aerodynamic drag caused by air turbulence. For around 1,200, a trailer skirt is claimed to increase fuel efficiency and save you approximately 400 gallons of fuel for every 50,000 miles of trailer operation. Based on an average of 100,000 miles per truck per year, and today s average diesel price per gallon (2.80), you would save around 2,240* annually. TrailerTail Trailer skirts are the most widely adopted fuel-efficient technology, according to a study by the North American Council for Freight Efficiency. Similar to trailer skirts, ATDynamics manufactures TrailerTails, a brand of rear tail fairings that reduce low-pressure suction drag behind a trailer. According to ATDynamics, tail fairings on a long-haul trailer that does 60,000 miles per year can save 480 gallons of diesel fuel. That equates to 1,344* in savings. Image Source: Heavy Duty Trucking *Savings based on average diesel prices when the white paper was written in June Image Source: Fleet Owner

8 8 WHEN A TRUCK IS TRAVELING BELOW 50 MPH, TIRES MAKE THE BIGGEST DIFFERENCE IN FUEL SAVINGS. Tires Worn tires (tires used for 35,000-50,000 miles) provide up to 7% better fuel efficiency than new tires, according to Cummins. As the tread on a tire wears, the rolling resistance of the tire changes. So a 7/32 tread wear gives you about a 10% reduction in rolling resistance (about 5% better mpg) compared to a new tire. Tread pattern is also important. According to Bridgestone, the tire tread accounts for 60 70% of the tires rolling resistance, so a new lugged tire is less fuel efficient by about 6%. Also, keeping the correct air pressure in your tires helps them last longer and your truck handle better, and you save money on fuel. For every psi that a truck s tires are under-inflated, fuel economy is reduced by 1%. Low-rolling-resistance tires can increase fuel efficiency by as much as 5%. Immediately after motion, tires consume energy, heat up, and soften in use, which increases rolling resistance or how much effort the truck has to put into making the tires roll. Differences in tire dimensions, design, materials, and construction will cause differences in rolling resistance as well as traction, handling, noise, wear resistance, and appearance. Tires with low rolling resistance use tread design and new materials to lessen the amount of fuel needed to move the truck. On average, rolling resistance accounts for 35% of a truck s fuel consumption. Low-rolling-resistance tires are designed to minimize drag and improve air flow over the entire tractortrailer vehicle, which can save you money on fuel costs. Also, the use of wide-base tires can save you an average of 400 gallons or 1,120* per year! By using wide-based tires on drive and trailer axles, rolling resistance is improved, which increases fuel efficiency and saves you money. According to Cummins, testing has shown as much as 4% miles per gallon improvement over conventional dual-rib tires on drive and trailer axle wheels. APEX FUEL CARD HOLDERS ALSO RECEIVE DISCOUNTS ON TIRES AND SERVICES.

9 9 FUEL EFFICIENT DRIVING TECHNIQUES The Sweet Spot 60 mph Another way to save money on fuel costs is to use fuel saving driving strategies, like reduced driver speed. By encouraging your drivers to slow down and avoid aggressive driving, you could save on fuel costs. Drivers who practice fuel-efficient strategies get about 30% better fuel efficiency than those who don t, according to Cummins. As a rule of thumb, you can assume that every 5 mph over 60 mph is like paying an additional 0.20 per gallon for fuel. According to Glen Kedzie, Vice President of Environmental Affairs for the ATA, a truck traveling 65 mph uses 27% less fuel than a truck traveling 75 mph. Driving slower can also prevent unnecessary acceleration and frequent braking, which could make a difference of 5-35% in a truck s fuel consumption, according to AAA. DO YOU KNOW HOW SPEED AFFECTS YOUR MPG? mpg 6.0 mpg 5.1 mpg Reduce Idling Idling increases stress on a truck s engine, which uses additional fuel and increases maintenance costs. Every hour spent idling can decrease fuel efficiency by 1%. Even minimizing the use of the air conditioner can help you save on fuel. Running the air conditioner increases fuel consumption by 0.2 to 0.4 mpg. A great alternative to running the air conditioner and idling is stopping at a rest stop that features idle-free technology.

10 10 THE COST OF FUEL IS CONSTANTLY CHANGING, BUT WITH THESE TIPS, YOU CAN HELP YOUR TRUCKS OPTIMIZE FUEL USAGE, REDUCE FUEL CONSUMPTION, AND SAVE BIG AT THE PUMP. Want to learn more about how the Apex Fuel Card and Apex Fuel Finder can help you save even more on fuel costs? Call Apex at ! Apex offers clients quick payments, industry-leading service and the best credit system in the industry. When you factor with Apex, you can run free credit checks 24/7 to make sure you re hauling the right loads and with the Apex Fuel Card Program you can save big at the truck stops you visit most. Low, competitive rates Recourse and non-recourse factoring options Same-day or next-day funding Fuel credit lines available Fast and reliable funding with faxes and copies No termination fees or long-term contracts Access your account 24/7 from your computer, smart phone or tablet We give you the tools and services you need to manage your business smarter, faster and easier! FREE access to our load board, NextLOAD.com FREE fuel card with discounts on fuel and services nationwide FREE online Account Management Portal (AMP) 24/7 FREE credit checks and self-funding 24/7 FREE Mobile Factoring app with image capture technology Why is Apex America s Favorite Factor? Apex has specialized in factoring for the trucking industry for nearly 20 years. We ONLY factor freight bills. We are experts in the industry and we continually add new and innovative programs and processes to help our clients save money and manage their business.